| Summary/Abstract |
This article examines the relationships between 21 fiat currencies to Bitcoin price movements using daily data from the beginning of 2012 to the end of March 2021. We use a two-stage analysis. The first stage excludes currencies, which are uncorrelated with the daily returns of the Bitcoin. The second stage is to run a Granger-causality test on the remaining six currencies to examine whether lagged excess returns on the Bitcoin Granger-cause the excess returns on the currencies or vice versa. Results support the conclusion that the return on Bitcoin Granger-Cause the return on the Israeli Shekel (ILS), but not vice versa. A possible explanation of these outcomes is the susceptibility of financial investors in Bitcoin and the ILS to the Israeli economy.
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